14.04.2016, 16:36
Clearstream calls for certainty of cross-border investment activities in Europe
OREANDA-NEWS. Clearstream calls for certainty of cross-border investment activities in Europe. According to Marc Robert-Nicoud, CEO of Clearstream Holding, the revision of the EU prospectus directive is a step in the right direction. “It is essential that we start to look for smart ways of making cross-border investments easier”, Robert-Nicoud said. Clearstream therefore strongly supports the European Commission’s Capital Markets Union (CMU) to put in place the building blocks for a fully functioning CMU by 2019.
Providers of post trade services will play an essential role in this attempt to foster positive economic performance in Europe while ensuring safe and stable financial markets. “Our services are designed to support the financial sector in creating growth. But we need initiatives like the CMU to make it happen”, Robert-Nicoud said when presenting Clearstream’s March figures. He sees a strong need to further develop Europe’s capital markets because robust financial markets are both the prerequisite for and the outcome of economic growth.
One key element for a well functioning CMU is a regulatory and legally coherent post-trade industry. Existing harmonisation initiatives like TARGET2-Securities (T2S) are a step in the right direction but have to be further accelerated. According to Robert-Nicoud it is essential to remove barriers like legal uncertainties with regards to securities ownership in case of a default. Currently investors face lack of clarity when the securities issuer and the investor are located in different member states and securities are held by financial institutions in different member states. Finally, CMU related initiatives are also needed for the financial industry to resume growth.
Safe and efficient functioning of market infrastructure in Europe is vitally enhanced by the centralisation of settlement via the new T2S settlement platform that Clearstream will join on 6 February 2017. This will be further supported by establishing a regulatory European framework for the recovery and resolution of systemically important market operators.
Business stream Custody
In March 2016, the overall value of assets under custody held on behalf of customers registered a decrease of 4 percent to EUR 13.0 trillion (compared to EUR 13.5 trillion in March 2015) in line with overall market developments. Securities held under custody in Clearstream’s international business as an international central securities depository (ICSD) increased by 1 percent from EUR 7.1 trillion in March 2015 to EUR 7.2 trillion in March 2016. Securities held under custody in the German central securities depository (CSD) decreased by 9 percent from EUR 6.4 trillion in March 2015 to EUR 5.8 trillion in March 2016.
For the period year-to-date March 2015, the combined value of assets under custody in the German domestic CSD and global ICSD business decreased by 1 percent compared to the same period last year (YTD March 2016: EUR 13.0 trillion; YTD March 2015: EUR 13.2 trillion).
Business stream Settlement
In March 2016, 3.8 million international (ICSD) settlement transactions were processed, a 16 percent decrease over March 2015 (4.6 million). Of all international transactions, 84 percent were OTC transactions and 16 percent were registered as stock exchange transactions.
On the German domestic market, CSD settlement transactions in March 2016 reached 7.5 million, 19 percent less than in March 2015 (9.3 million). Of these transactions, 61 percent were stock exchange transactions and 39 percent OTC transactions. For the period year-to-date March 2016, the number of settlement transactions (OTC and stock exchange combined) processed for the German domestic CSD and global ICSD business combined decreased by 10 percent compared to the same period last year (YTD March 2016: 33.5 million; YTD March 2015: 37.3 million).
Business stream Global Securities Financing
For Global Securities Financing (GSF) services, the monthly average outstanding in March 2016 reached EUR 538.2 billion. The combined services, which include triparty repo, securities lending and collateral management, collectively experienced a decrease of 18 percent over March 2015 (EUR 653.2 billion). The GSF monthly average outstanding has contracted by 16 percent from the period year-to-date March 2016 (EUR 530.2 billion) to the period year-to-date March 2015 (EUR 628.4 billion).
Business stream Investment Fund Services
Investment Fund Services (IFS) processed 0.8 million transactions in March 2016, a 24 percent decrease over March 2015 (1.0 million). IFS transactions contracted by 16 percent from 2.7 million processed in the period year-to-date March 2015 to 2.2 million in the period year-to-date March 2016.
Providers of post trade services will play an essential role in this attempt to foster positive economic performance in Europe while ensuring safe and stable financial markets. “Our services are designed to support the financial sector in creating growth. But we need initiatives like the CMU to make it happen”, Robert-Nicoud said when presenting Clearstream’s March figures. He sees a strong need to further develop Europe’s capital markets because robust financial markets are both the prerequisite for and the outcome of economic growth.
One key element for a well functioning CMU is a regulatory and legally coherent post-trade industry. Existing harmonisation initiatives like TARGET2-Securities (T2S) are a step in the right direction but have to be further accelerated. According to Robert-Nicoud it is essential to remove barriers like legal uncertainties with regards to securities ownership in case of a default. Currently investors face lack of clarity when the securities issuer and the investor are located in different member states and securities are held by financial institutions in different member states. Finally, CMU related initiatives are also needed for the financial industry to resume growth.
Safe and efficient functioning of market infrastructure in Europe is vitally enhanced by the centralisation of settlement via the new T2S settlement platform that Clearstream will join on 6 February 2017. This will be further supported by establishing a regulatory European framework for the recovery and resolution of systemically important market operators.
Business stream Custody
In March 2016, the overall value of assets under custody held on behalf of customers registered a decrease of 4 percent to EUR 13.0 trillion (compared to EUR 13.5 trillion in March 2015) in line with overall market developments. Securities held under custody in Clearstream’s international business as an international central securities depository (ICSD) increased by 1 percent from EUR 7.1 trillion in March 2015 to EUR 7.2 trillion in March 2016. Securities held under custody in the German central securities depository (CSD) decreased by 9 percent from EUR 6.4 trillion in March 2015 to EUR 5.8 trillion in March 2016.
For the period year-to-date March 2015, the combined value of assets under custody in the German domestic CSD and global ICSD business decreased by 1 percent compared to the same period last year (YTD March 2016: EUR 13.0 trillion; YTD March 2015: EUR 13.2 trillion).
Business stream Settlement
In March 2016, 3.8 million international (ICSD) settlement transactions were processed, a 16 percent decrease over March 2015 (4.6 million). Of all international transactions, 84 percent were OTC transactions and 16 percent were registered as stock exchange transactions.
On the German domestic market, CSD settlement transactions in March 2016 reached 7.5 million, 19 percent less than in March 2015 (9.3 million). Of these transactions, 61 percent were stock exchange transactions and 39 percent OTC transactions. For the period year-to-date March 2016, the number of settlement transactions (OTC and stock exchange combined) processed for the German domestic CSD and global ICSD business combined decreased by 10 percent compared to the same period last year (YTD March 2016: 33.5 million; YTD March 2015: 37.3 million).
Business stream Global Securities Financing
For Global Securities Financing (GSF) services, the monthly average outstanding in March 2016 reached EUR 538.2 billion. The combined services, which include triparty repo, securities lending and collateral management, collectively experienced a decrease of 18 percent over March 2015 (EUR 653.2 billion). The GSF monthly average outstanding has contracted by 16 percent from the period year-to-date March 2016 (EUR 530.2 billion) to the period year-to-date March 2015 (EUR 628.4 billion).
Business stream Investment Fund Services
Investment Fund Services (IFS) processed 0.8 million transactions in March 2016, a 24 percent decrease over March 2015 (1.0 million). IFS transactions contracted by 16 percent from 2.7 million processed in the period year-to-date March 2015 to 2.2 million in the period year-to-date March 2016.
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